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14 May 2012

Businesses buy Federal Budget

Monday, May 14, 2012

THE Federal Budget has sparked mixed opinions on its benefit for small business owners across the south-west.

Last Tuesday treasurer Wayne Swan abandoned the government's promise to reduce the company tax rate from 30% to 29% as a part of the new mining tax scheme.

The broken promise left a bitter taste in some small business owner's mouths, while others have welcomed the new instant tax write-off for each asset purchased under $6,500 and $5,000 spent on new motor vehicles.

A new loss and carry back scheme will also allow businesses to offset a tax loss of up to $1 million and carry back past profits.

Southwest Chamber of Commerce manager Roger Taufel said the budget did not help small businesses "whatsoever".

"It's an issue where the government have given money to families, which is a good thing, but it has really doubled back on small businesses," he said.

"If small business fails, people and families lose their jobs.

"The government said they would bring relief to small business and they haven't.

"Many businesses I have spoken to are doing it really tough.

"It's a worry when the government say they are going to do something and they do not do it."

However, Bruce Leslie and Belinda Dare of Goodna both own small businesses and said they were pleased with the budget announcements.

"As a small business owner nothing has changed," Mr Leslie said.

"The comments being made about small businesses losing out is rubbish.

"Changes that were supposedly meant to come in have not come in, so we're in the same situation we were in to begin with."

Mr Leslie said he was not concerned the government did not fulfil their promise of providing small business owners with a tax break.

"It only matters if you are making a profit," he said

"I go to quite a few networking events and most business owners I speak to are just trying to make some kind of profit.

"Taxes on profits are far less important than making a profit.

"For my business having interest rates go down 0.25% has more of an effect, than the government providing a 1% tax cut sweetener."

The introduction of the carbon tax will put up expenses at Mr Leslie's engineering consultancy firm by less than 1%, but he said an interest rate cut would be enough to compensate for that.

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Click image to go to websiteInformation for victims of the Brisbane River flood at Goodna, Gailes and Redbank on 11 January 2011 as well as updates from the Queensland Floods Commission and advice for Ipswich flood victims how to join a legal class action to recover your flood losses.